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Treasury Management

๐Ÿ” Multisig Treasury: Shared Control

Learn how M-of-N signatures secure DAO funds

๐Ÿ” The Multi-Sig Problem

Single-key wallets are dangerous for treasuries. One compromised key = total loss. No human error protection. No recovery mechanism. When a DAO holds $50M+ in one wallet controlled by one person, it's a ticking time bomb. Multi-signature wallets solve this: require multiple approvals for every transaction.

๐Ÿ’€ Real Disasters

  • โ€ข Parity Wallet 2017: Library self-destruct killed $300M in multi-sig wallets (smart contract bug, not key compromise)
  • โ€ข Ronin Bridge 2022: 5-of-9 multi-sig, hackers compromised 5 keys โ†’ $600M stolen (validator key concentration)
  • โ€ข Numerous DAOs: Single signer goes rogue, disappears, or dies โ†’ funds locked forever

๐ŸŽฎ Interactive: Multi-Sig Security Calculator

Explore how threshold requirements protect against compromised keys. Adjust signers, threshold, and attack scenarios.

5 signers
3 (minimum)15 (complex)
3 of 5
2 (fast)5 (unanimous)
1 compromised
0 (secure)5 (total breach)
Security Status
โœ… SECURE
Safety Margin
2 keys
Before breach
Threshold %
60%
Of total signers
๐Ÿ›ก๏ธ Analysis:

Good security with 2-key buffer. However, 1 keys are already compromised. One more breach and you're 1 key away from total loss. Consider rotating compromised keys.

๐Ÿค” Why Multi-Sig?

โœ… Protection Against:
  • โ€ข Single key compromise (phishing, malware)
  • โ€ข Rogue insider attacks
  • โ€ข Human error (wrong address, fat finger)
  • โ€ข Loss of access (death, disappearance)
โŒ Doesn't Protect Against:
  • โ€ข Smart contract bugs (Parity library bug)
  • โ€ข Coordinated attacks (5 of 9 compromised)
  • โ€ข Social engineering (all signers tricked)
  • โ€ข Centralization (all keys held by one entity)

๐Ÿ’ก Key Insight

Multi-sig isn't just about number of keysโ€”it's about distribution and independence. A 3-of-5 multi-sig where one person controls 3 keys is worthless. A 5-of-9 where all 9 signers are validators on the same network can be compromised together (Ronin). Real security requires: geographically distributed signers, independent key management, diverse entities, and operational security.